It was only a year ago that all of America was freaking out about the debt ceiling and the U.S. credit rating downgrade.
Soon enough, Americans might have to freak out about something that could be much bigger.
A handful of government programs are set to expire this year, and all of the experts are warning that we’ll be screwed in 2013 if the government doesn’t do anything about it. Roger Altman, Richard Koo, Michelle Meyer, and Howard Ward are just a few to chime in on the matter.
RBC strategist Myles Zyblock is out with his Spring North American Strategy Outlook., which offers a breakdown of the major programs set to expire:
RBCCM’s economists also warn of a more ominous U.S. GDP growth profile if current government policies are allowed to sunset. This is an important risk to consider in an election year. As much as a 3.2% hit to GDP is expected in 2013 if current policies are not extended (Exhibit 6).
Photo: RBC Capital Markets